For manufacturing and distribution companies with foreign sales, 2012 was scheduled to be the last year certain tax benefits remained for export sales. However, recent legislation extended capital gains tax rates for qualified dividends which also extended the tax benefit of setting up an IC-DISC. If your company generates revenue from foreign sales, certain provisions allow companies to re-characterize income to take advantage of lower tax rates. Companies capture the tax benefits by forming an interest charge-domestic international sales corporation (IC-DISC).
File Download: The IC-DISC